Tech startup: I really do make mobile phones!

Chapter 241 Traveling with Capital
Beijing, Changping Science and Technology Park, Building 18.

The spring sunshine shone on the slightly worn glass curtain wall. Cheng Congwu, CEO of Gaode Map, along with several core executives of the company, waited early at the entrance of the building.

Their expressions were a mixture of anticipation and nervousness, and their eyes kept glancing toward the park entrance.

Soon, several black minivans drove up smoothly and stopped.

The car door opened, and the investment team, led by Lin Junfeng, manager of Orange Technology's legal department, got out of the car briskly.

Behind him were his deputy—Gao Yu, the head of the business group under the Ministry of Justice, and several of his group members.

This business team is a highly skilled group that Orange Technology specifically built within its legal system to professionally handle investment and M&A matters. It combines legal rigor with business acumen and financial auditing skills.

It's safe to say that this business team is comprised of true business elites within Orange Technology!
Cheng Congwu immediately stepped forward and warmly shook hands with Lin Junfeng: "President Lin, welcome, welcome! You must have had a long journey!"

He was not completely ignorant of the Orange Series.

On the contrary, with Orange Treasure Internet's rise on the mobile internet platform through its three major entry points—input methods, app stores, and browsers—any entrepreneur aspiring to succeed in the mobile internet cannot ignore this new force in the internet world.

When Gaode launched its Series A funding round, it had sounded out Shunwei Capital, but the latter ultimately chose to invest in industry leader KLD.

Just when Cheng Congwu thought he had reached a dead end, Shunwei introduced Orange Technology to him, which was undoubtedly a ray of hope.

Cheng Congwu carefully studied Orange Technology's investment trajectory and found that it invested in ByteDance last year. In addition, Orange Treasure's own "seven major mobile terminal basic traffic entrances" strategy clearly includes "map and location services".

He immediately realized that this might be Gaode's only chance to seize the mobile internet wave and achieve a leapfrog development.

As early as 06, Gaode received seed round investment from Hongshan Planting Flowers and KBCP (North American University Foundation), but it has been struggling to find a clear profit model and its market share has been constantly squeezed by Kailide.

Two years ago, he defied public opinion and made a bold bet on the Beidou positioning system. Although he obtained a policy-based loan to solve the immediate problem, the company needed a new round of funding to transform to mobile and promote free mobile map navigation services.

Meanwhile, the early investors were now adopting a wait-and-see approach.

After a brief exchange of pleasantries, Cheng Congwu personally led Lin Junfeng and his entourage on a tour of the company, introducing Gaode's technical team, data collection and processing capabilities, and its firm strategic determination to invest in Douyin and the free model.

He highlighted Gaode's initial achievements and user growth data on its mobile app, showing that although the base was small, the growth rate was considerable.

Subsequently, in the conference room, Lin Junfeng instructed Gao Yu, the head of the business team, to lead the team and officially launch the due diligence investigation.

Gao Yu's team demonstrated exceptional professionalism and efficiency, conducting a comprehensive and in-depth investigation into Gaode's technology patents, data sources, user data, financial status, market competition landscape, and core team within a week.

After due diligence, Lin Junfeng's team conducted a rigorous internal evaluation and gave a pre-investment valuation of 11 billion yuan.

This valuation takes into account Gaode's current market position and financial performance, as well as the premium for its firm bet on the free mobile model and the future potential of the Beidou system.

Based on this valuation, Orange Technology decided to lead the investment with 8000 million yuan.

Interestingly, Hongshan Flower Planting and KBCP (North American University Foundation), which had been observing the situation, seemed to be reassured after learning that Orange Technology was leading the investment and had given a clear valuation, and immediately expressed their willingness to follow suit.

Ultimately, the Series A financing plan for Gaode was finalized: 15% of its shares were released, raising a total of 1.65 million yuan.

Orange Technology invested 8000 million yuan to acquire approximately 7.27% equity.

Hongshan Planting Flowers invested in the project and acquired a 5.31% stake.

KBCP (North American University Foundation) also participated in the investment, acquiring a 2.42% stake.

Following its Series A funding round, Gaode's equity structure changed as follows:
Gaode Founding Team: 80%
Flower planting in Hongshan: 8.31% (existing 3% + new 5.31%)
Orange Technology: 7.27%
KBCP (North American University Funding): 4.42% (existing 2% + new 2.42%)
The atmosphere was lively at the celebratory banquet following the successful financing.

Li Ming, the business manager in charge of this investment at Hongshan Planting Flowers, came to Lin Junfeng's side with a wine glass in hand.

"Mr. Lin, this collaboration has been very pleasant! Your company's professionalism and efficiency are truly impressive."

After exchanging a few pleasantries, Li Ming lowered his voice and became more serious.

"Mr. Lin, there's something I'd like to ask you to convey."

Mr. Shen Nanpeng, the general manager of Hongshan Flower Planting, learned that General Manager Chen is currently in Shanghai and very much hopes to meet with him and have a face-to-face exchange.

"I wonder if Mr. Lin could pass on a message?"

Lin Junfeng thought for a moment and responded cautiously.

"Mr. Li, I will definitely convey your message! But whether Mr. Chen is willing to meet, and when is convenient, is up to Mr. Chen to decide."

Li Ming quickly expressed his gratitude.

"I understand, I completely understand! I would be extremely grateful if Mr. Lin would be willing to convey this message!"

He then added with a hint of self-deprecation, "To be honest, Mr. Lin, when the first batch of payment licenses were issued last year, our 'QianDaiPay' project, which was promoted by Hongshan, was squeezed out by your 'ChengPay' at the last minute. Mr. Shen gave me a good scolding for that."

I hope to have the opportunity to communicate with Mr. Chen in person this time, in order to clear up any possible misunderstandings.

Lin Junfeng was slightly taken aback, not expecting that there was such a "grudge" between Chengzi and Hongshan.

But judging from Li Ming's attitude at this moment, the other party is not here to interrogate him, but rather seems to want to take this opportunity to build a relationship.

Lin Junfeng nodded calmly: "Don't worry, Mr. Li, I will explain the situation to Mr. Chen as well."

On the other side, at the headquarters of Wangjing Wheat Technology.

During a break from his busy schedule, Lei Jun listened to a report from Xu Dalai, a partner at Shunwei Capital.

Xu Dalai mentioned Orange Technology's investment in Gaode Maps, his tone carrying a hint of doubt.

"Mr. Lei, Orange has acted very quickly and has already finalized its lead investment in Gaode's Series A round."

This Mr. Chen, last time he accurately predicted ByteDance's move, quickly gaining a foothold by leveraging Orange Treasure's advantage in mobile traffic entry points. This time, he's rapidly deploying another high-level strategy, which is truly unpredictable!

Lei Jun waved his hand, appearing very magnanimous.

"Alright, Lao Xu!"

When it comes to investing, once you've made a move, there's no going back.

Now that we've decided to invest in Kailide, let's stop thinking about Gaode.

Let's talk about our current focus – the strategic layout in the Indian market!

Xu Dalai produced two third-party due diligence reports.

"The due diligence results for the two internet projects from India are satisfactory."

We can proceed as planned, first laying the groundwork by investing in internet projects such as social media and e-commerce. Once we are familiar with the market environment, we can then smoothly expand our mobile phone business there!

Lei Jun nodded: "Going with the flow is the core strategy of our Shunwei Capital."

This year, India officially joined the Shanghai Cooperation Organisation (SCO), and the summit was held in New Delhi, which is a clear signal.

Look, Zhongye Saidi has already started investing in infrastructure and smelting plants.

We use the internet to explore new paths; the risks are manageable, and we can advance or retreat freely.

A hint of worry appeared on Xu Dalai's face.

"Mr. Lei, what I'm worried about is that Bubu Gao (a traditional Chinese medicine) has a very deep traditional distribution channel in India."

If our mobile phone model is successfully validated in India, it will be very easy for them to imitate and promote it.

Lei Jun rubbed his temples: "We wheat have no roots in India, so we can only rely on capital to open up the situation first. We can't worry about the Step-by-Step Ointment for now."

He changed the subject, his brows furrowing slightly.

"I'm actually more worried about the oranges."

Their focus on lower-tier markets overlaps significantly with our target customer base in India.

Fortunately, I probed Chen Mo at this gathering, and he doesn't seem to have any plans to enter the Indian market at the moment. Instead, he is prioritizing the Russian market.

This is good news for us.

Xu Dalai echoed, "Indeed, everyone can see that India's economy has grown rapidly for eight consecutive quarters, with its GDP growth rate second only to ours. It is a promising emerging market."

I really don't understand why Mr. Chen is so resistant; why did he take the lead in going overseas but not go to India to establish a presence?

Lei Jun smiled, with a hint of understanding in his expression.

"Young people always have their own opinions and convictions."

Do you remember when he publicly refuted Ai Xiaosong's remarks about Indians at Peking University two years ago?

It is clear that he had a poor impression of that market.

"The fact that Orange isn't going in means we've eliminated a strong competitor, which is a good thing!"

He went on to analyze: "The domestic smartphone market is now basically stable."

The lower-tier market is guarded by Nietzsche and occupied by the tech-savvy Orange, making it impenetrable.
The high-end market is dominated by Pingguo and Sanjing, whose brand recognition barriers are too high.

The mid-range market is fiercely competitive. If we want to incubate a sub-brand called "Red Wheat" that focuses on cost-effectiveness, it will be very difficult to succeed domestically. We can only look for opportunities in emerging overseas markets like India!

Chen Mo, far away in Shanghai, probably never imagined that the flapping of his "butterfly" wings would indirectly "force" the "Red Wheat" series, which was born in China in his previous life, to go abroad ahead of schedule and head to a wider overseas market.

Shanghai Jiao Tong University campus.

The sycamore trees are sprouting green leaves, and spring is in full bloom. Chen Mo and Lu Qingyue walk side by side on the tree-lined path, just like an ordinary couple on campus.

Students carrying books hurried by, and couples strolled hand in hand, blending in seamlessly without appearing out of place.

"When you were studying at Harvard, did you find it very tiring?" Chen Mo casually started a conversation.

Upon hearing this, Lu Qingyue frowned slightly and began to think very seriously, as if she were considering the most accurate wording.

Chen Mo couldn't help but smile and gently touched her shoulder.

"No need to be so serious, we're just having a casual chat."

Lu Qingyue turned her head and looked at him with clear and serious eyes: "I believe that honesty is an indispensable quality in intimate relationships. I need to answer your question seriously."

Chen Mo was amused by her almost rigid sincerity and surrendered with a smile.

"Okay, okay, I was wrong. Please give me your guidance, Teacher Lu!"

Just then, his phone rang; it was Lin Junfeng calling.

Chen Mo glanced at Lu Qingyue, smiled understandingly, quietly took his arm, and slowed her pace so as not to disturb him.

During the phone call, Lin Junfeng first gave a brief report on the final results of the investment in Gaode and the equity arrangement. Then he mentioned the meeting invitation from Shen Nanpeng of Hongshan Planting Flowers and subtly explained that the other party had mentioned the payment license issue last year, but his attitude was friendly.

After listening, Chen Mo pondered for a moment and asked, "What do you think their intentions are?"

Lin Junfeng analyzed: "Judging from Li Ming's attitude, it doesn't seem like he's bringing up old grievances. It seems more like he wants to take this opportunity to establish connections. I think they may be interested in the future development potential and investment opportunities of the Orange Group."

After hanging up the phone, Chen Mo looked at Lu Qingyue beside him and briefly explained the situation.

Then he asked, "What do you think this Mr. Shen from Hongshan is up to?"

Lu Qingyue thought for a moment and analyzed the situation calmly.

"If you cause him to suffer losses, and he greets you with a smile instead, the only explanation is that he believes you offer him an opportunity to gain even greater benefits."

Chen Mo nodded in agreement: "Yes, the world is bustling with activity, all driven by self-interest! Ultimately, people will only treat you kindly if they see something of benefit to them."

After strolling around for a while, Chen Mo called Zhao Tiezhu out to have dinner together.

To Chen Mo's surprise, Zhao Tiezhu didn't come alone; he brought three young men who looked somewhat shy but had bright eyes.

Zhao Tiezhu introduced with a grin: "Brother Mo, Sister Lu, this is my roommate! That little studio I invested in was something the four of us did together!"

Chen Mo didn't show much surprise. He politely shook hands with the three of them and offered them a few words of encouragement.

The three young men were very excited to see the legendary "Chen of Oranges." They listened as Zhao Tiezhu boasted about how "arduous" the early days of Oranges' business were, and how the two of them squeezed into the laboratory to sleep on the floor and on cardboard during their "glorious years."

Even Lu Qingyue couldn't help but turn her head curiously to look at Chen Mo and asked softly, "Did you really have to endure such hardship back then? Did you sleep in the lab?"

Chen Mo couldn't help but chuckle and explained in a low voice.

"Don't listen to this kid's nonsense."

At that time, I lived in the laboratory in Takioka mainly for the convenience of conducting experiments and to save commuting time.

It's not that we're so poor we have nowhere to live!

Upon hearing this, Lu Qingyue smiled and looked at Zhao Tiezhu, who was still talking eloquently, with a hint of understanding in his eyes.

The following day, the Bund.

A top-notch coffee shop overlooking the Huangpu River.

Chen Mo arrived as agreed.

Shen Nanpeng was already waiting there. He stood up to greet him with a warm and infectious smile, showing no sign of displeasure that "QianDaiPay" might have caused by taking away his license plate.

"President Chen, I've long admired your name! Meeting you today, you are indeed even more young and promising than I imagined!" Shen Nanpeng extended his hand proactively.

"Mr. Shen, you flatter me. You are the true evergreen in the investment world, a senior figure!"

Chen Mo shook hands with him, his smile polite.

The two sat down and chatted casually about the current economic situation and emerging technologies, creating a relaxed atmosphere.

Shen Nanpeng knew how to maintain a good pace, and naturally steered the conversation to the main topic during the coffee refills.

"Mr. Chen, I'm a straightforward person, so I won't beat around the bush."

Shen Nanpeng leaned forward slightly, his tone sincere.

"I know that several core companies under the Orange Group have plans to launch Series A financing this year."

We at Hongshan Flower Planting really hope to have the opportunity to participate.

"Don't worry, Mr. Chen, we understand the rules. We only seek an opportunity to co-invest and will absolutely not interfere with the company's normal operations and development strategy."

Chen Mo understood immediately; they had indeed come for profit.

He paused for a moment, his fingertips gently tracing the rim of the glass, then looked up at Shen Nanpeng, his gaze calm yet carrying an undeniable firmness.

"Mr. Shen, co-investing is possible."

Let your LPs (Limited Partners) earn some pocket money, no problem!

“However,” he emphasized slightly, “I also hope that President Shen can clearly convey to them that Orange Group is a company that focuses on manufacturing and technology. We hope everyone can cooperate happily and not try to interfere, only to humiliate themselves. This is unpleasant to say, and it is also our bottom line!”

Shen Nanpeng's smile remained unchanged as he immediately expressed his opinion.

"Don't worry, Mr. Chen! Hongshan has been in the industry for so many years, and its most important values ​​are reputation and integrity."

Everyone knows that Orange Technology is now a representative of cutting-edge technology in China, with a bright future ahead. Many eyes are watching, and we will only add to its success; we would never do anything unwise.

Seeing Chen Mo nod, Shen Nanpeng knew that the first thing had been accomplished.

He then asked, "Mr. Chen, what new plans do you have recently? If a suitable opportunity arises, Hongshan is willing to continue to support you."

Chen Mo smiled and released a message.

"Lei, the CEO of Xiaomai, is preparing to spin off the 'MaiChat' business for independent operation."

Next month, I will take the lead in inviting several closely related mobile terminal manufacturers to invest in the company.

Is Hongshan interested in making a bet?

Upon hearing this, Shen Nanpeng frowned slightly. As a seasoned investor, he instinctively judged: "President Chen, please forgive my bluntness!"

Tencent's dominance in the instant messaging field is almost absolute.

Even with the help of terminal manufacturers, MaiTalk's chances of winning against Weixin are probably slim.

Chen Mo had anticipated this and explained calmly.

"I understand Mr. Shen's concerns."

But for MaiTalk, I have a new positioning plan.

It no longer directly competes with Weixin's main battlefield of personal social networking, but instead shifts its focus to the enterprise-level work instant messaging track.

Combined with our OrangePay, it can even be deeply integrated with enterprise OA and online financial reimbursement systems.

This is a completely new and differentiated market.

What does Mr. Shen think of this story?

Shen Nanpeng's eyes lit up instantly!

A brand new track means a brand new market space and valuation system!
This is fatally attractive to capital.

"Enterprise-level instant messaging integrated with online payment and financial systems. Brilliant!" He couldn't help but clap his hands. "President Chen's thinking is truly ingenious! Hongshan is willing to invest at a premium in this project! Consider it an expression of our sincerity in cooperating with the Orange Group!"

Chen Mo raised his coffee cup and smiled calmly.

"President Shen, I don't need a pledge of allegiance."

What I need are partners who can move forward together and share the benefits.

My vision is that in the future, Morgan Stanley could serve as Orange Group's partner in the international capital markets, while Hongshan Flower Planting could become our closest strategic partner domestically.

Shen Nanpeng immediately understood, solemnly raised his glass, and lightly clinked it with Chen Mo's: "A win-win cooperation! Mr. Chen, I wish us a pleasant collaboration!"

The coffee in the cup swirls gently, reflecting the bustling scene of Pudong outside the window.

Chen Mo was well aware that the future expansion and development of the Orange Group would be inseparable from the support of the capital market.

For Orange Group to become a part of the global supply chain, profit sharing is essential; otherwise, why would local bigwigs let you in to make money?
Since we cannot do without capital, we should choose the strongest and most rule-abiding partner to cooperate with while maintaining our own dominance.

Moreover, Chen Mo doesn't even realize that Orange, which can readily invest over a billion yuan in cash, is actually a new form of capital!

(End of this chapter)